“Italy’s new premier Enrico Letta is on a collision course with Germany after vowing to end death by austerity, and warned that Europe itself faces a ‘crisis of legitimacy’ unless it charges course. He said the country is in ‘very serious’ crisis after a decade of stagnation and warned of violent protest if the social malaise deepens. The grand coalition of Left and Right – the first since the late 1940s – will abolish the hated IMU tax on primary residences, a wealth levy imposed by ex-premier Mario Monti, and push for tax cuts for business and young people to pull the country out of perma-slump. A rise in VAT to 22pc in July may be delayed.”
